Financial Crime World

Financial Sanctions and Embargoes in Sudan: US Imposes New Restrictions

The United States has imposed new financial sanctions and embargoes on three entities responsible for undermining the peace, security, and stability of Sudan. The sanctions, issued by the Office of Foreign Assets Control (OFAC), target Alkhaleej Bank Co Ltd, Zadna International Co for Development Ltd, and Al-Fakher Advanced Works Co. Ltd.

Sanctions Target Key Entities

The US Treasury Department’s Under Secretary for Terrorism and Financial Intelligence, Brian E. Nelson, stated that the conflict in Sudan continues due to key individuals and entities that help fund the continuation of violence. The sanctions aim to disrupt these funding sources and target networks responsible for supporting the two main belligerent parties, the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF).

Entities Sanctioned

Alkhaleej Bank Co Ltd

  • Controlled by the RSF
  • Involved in financing its operations
  • Reportedly received $50 million from the Central Bank of Sudan before the start of the current conflict

Zadna International Co for Development Ltd

  • Subsidiary of the SAF’s Defense Industries System
  • Moved under the control of the SAF’s Special Fund for the Social Security of the Armed Forces to shield it from civilian oversight

Al-Fakher Advanced Works Co. Ltd

  • Established by RSF senior leadership to conduct its gold export business
  • Generates millions of dollars used to purchase weapons

Consequences of Sanctions

As a result of the sanctions, all property and interests in property owned by the designated persons are blocked and must be reported to OFAC. Transactions involving any property or interests in property of designated persons by US persons or within the United States are also prohibited, unless authorized by a general or specific license issued by OFAC.

Goal of Sanctions

The ultimate goal of the sanctions is not to punish but to bring about positive change in behavior. The power and integrity of OFAC sanctions derive from its ability to designate and add persons to the SDN List as well as remove them consistent with the law.

Seeking Removal from an OFAC List

For more information on the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.